GCICleanTech Lithium shares jump as confidence increases in Chilean assets
( ), a Chile-focused lithium explorer, announced today unaudited results for the 6 months ended 30 June 2022 (1H 2022).
Period highlights
CleanTech Lithium's AIM listing in mid-March 2022 raised £5.6m, which funded successful initial drilling campaigns at Laguna Verde and Francisco Basin. The company ended 1H with £4.67m, compared to £185K a year ago. Development of its projects incurred £1.99m in capex costs.
Lithium grades of up to 409mg/L at Laguna Verde and up to 324 mg/L at Francisco Basin were announced following independent lab analysis from both sites. At Laguna Verde, the company said it successfully produced 1kg of battery-grade lithium, with independent lab results confirming over 99.9% Li2CO3 and very low impurities.
Post-period, CleanTech Lithium announced an updated JORC resource at Laguna Verde, increasing the total resource by 22% from 1.244m tonnes to 1.512m tonnes LCE at a grade of 206mg/l, with measured and indicated resource increasing from 78,000 tonnes to 803,000 tonnes. A maiden JORC resource for Francisco Basin is expected to to be announced in the near future.
CleanTech Lithium also said it has commenced Environmental Impact Assessment (EIA) studies for both projects, and that a scoping study at Laguna Verde is due to complete in Q4 2022.
Looking ahead, the company said it has applied for 119 new exploration licences covering an area of over 344 km2, which is to become its new Llamara Project. Licenses are expected to be awarded in Q4 2022.
Post-period end
After 30 June, the company signed an MoU with SunResin New Materials for further development of its projects, including provision of facilities for the Laguna Verde pilot plant testing programme, due to commence in Q1 2023. It also completed the aforementioned updated JORC resource for Laguna Verde, providing much higher confidence in the resource potential of the site.
Aldo Boitano, CEO, commented:
"The first half of 2022 has seen CleanTech Lithium make terrific strides forward in our understanding of the potential value of our flagship assets. Our drilling campaigns have produced results we are really pleased with and we will continue to drive forward on our work programmes in 2H 2022 to optimise their potential value.
"We have also added in another asset opportunity of significant potential scale to our portfolio, Llamara, with the formal ratification of the award of these licences expected in Q4 2022, following which we are looking forward to undertaking an exploration well on that asset. Our Board is excited at the potential of this opportunity which was obtained at very low cost and using effective M&A processes."
View from Vox
CleanTech Lithium had a busy 1H that saw active development of its Laguna Verde and Francisco Basin projects, setting it up for continued growth in 2H 2022 and 2023. In the short amount of time since its IPO in March, the company has moved at a fast pace through its work programmes at both locations, and added a third asset at Llamara, offering significant additional lithium exploration potential.
Investors have rewarded the company for its efforts, sending shares up 7% this morning, and 55% YTD. The upgraded JORC resource at Laguna Verde, expected maiden JORC resource at Francisco Basin, and additional associated drilling, represent near-term value inflection points as confidence increases in the company's projects. Additionally, an initial exploration well at Llamara is expected in Q4 2022.
Moreover, the company has already produced battery grade lithium using DLE processes, and is moving forward with its planned pilot plant, helped by its new relationship with DLE specialists SunResin. The pilot plant testing programme is set to begin in Q1 2023.
CleanTech has also indicated active interest in its projects from potential strategic or future offtake partners. CleanTech said it was in early stage discussions with companies of "substantial scale", including car manufacturers, trading houses, battery manufacturers, and large mining companies.
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